Ex-GM director York says auto bankruptcies needed

[AlphaCentauri]

Source: reuters

Jerry York, a former board member of General Motors Corp and an executive at Chrysler two decades ago, said on Tuesday the bankruptcies for the two automakers were "absolutely necessary."

The bankruptcy filings were needed to allow GM and Chrysler to pare debt and dealers, and both companies have a chance to survive after the restructurings, said York, an adviser to billionaire investor Kirk Kerkorian who served on GM's board in 2006.

Chrysler filed for bankruptcy on April 30 and a sale of its best assets to a company led by Italy's Fiat SpA (FIA.MI) has been approved by a U.S. Bankruptcy Court judge. It hopes to push the new company out of bankruptcy quickly.

GM followed rival Chrysler into bankruptcy on June 1 and hopes to complete a similar sale process by the end of August.



Read more: http://www.reuters.com/article/marketsNews/idUSN0940739920090610

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They knew, ha!

[babylonsister]

1. Ha! So the rethugs can blame this admin and stop buying cars

from these companies, but they're working on a false premise. I imagine they know that and don't care.

[Psephos]

3. Until quite recently, it was standard practice around here to bash US carmakers

Times have changed.

[Demeter]

2. There Are Two Kinds of Bailouts

There's the kind where govt. throws money at fraudulent, criminal banksters, and the kind where wrong-headed companies abandon their customers, suppliers, workers, retirees and communities, and bail out of the support network that kept them fat and happy for decades.....and neither one is kosher.